How to Find the Best Credit Union CD Rates

Credit Union CD Rates

A certificate of deposit (CD) is a savings account that locks up funds for an agreed-upon term and pays a higher interest rate than traditional checking or savings accounts. Banks and credit unions both offer CDs, which can be a good investment choice for consumers who are looking to earn a stable return on their money. However, it’s important to know that you’ll have to commit your funds for a set amount of time and may pay a penalty if you withdraw them early. Our guide discusses how to find the best CD rates and where to get them, as well as how to avoid paying early withdrawal penalties.

The key to finding the best Credit Union CD Rates is knowing what you’re looking for. When comparing CD rates, be sure to look at the annual percentage yield (APY), minimum deposit requirements, and how often interest compounds. Depending on your needs, you might also want to consider the flexibility of a credit union’s early-withdrawal policies.

Another factor to keep in mind is the size of the institution. Some credit unions specialize in jumbo certificates of deposit, while others offer regular CDs as well. If you’re able to invest a large sum of money, you might be able to take advantage of a jumbo CD that offers a higher rate than a standard account.

In addition to APY, you should also pay attention to the number of banks or credit unions that offer each product. The top CD rates typically come from larger financial institutions that have a national presence and extensive branch networks. On the other hand, small, locally based institutions might be able to offer competitive CD rates because they can focus on building long-term relationships with local customers.

How to Find the Best CD Rates

As with savings accounts, when comparing CD rates, it’s important to consider the minimum deposit requirements, early-withdrawal penalties, and other terms and conditions of each product. It’s also helpful to understand how often the APY will be calculated and whether it accounts for compounding. To ensure that you’re getting the most accurate representation of how much your money will grow, it’s best to use a tool like APY Compare.

As non-profit organizations, credit unions tend to offer more competitive CD rates than banks do. As a result, they can maximize their earnings for members without having to worry about satisfying the demands of shareholders. In addition, credit unions that belong to the CO-OP shared-branching network can provide access to branches and ATMs across the country, allowing members to enjoy more options when they invest in CDs with a credit union. This makes them a strong option for investors in search of a great deal on their next savings goal. To get started, check out our list of top CD rates from credit unions. You’ll be glad you did.